R
2 Companies has expanded its local portfolio with the acquisition of a 1 million-square-foot office and research complex in Libertyville's Innovation Park. The joint venture between R2 and JDI Realty purchased the campus on Innovation Way for $35 million, according to Crain’s.

    The seller, Beco Management, initially bought the site in 2013 for $9.5 million and invested nearly $40 million in its redevelopment into a modern office hub. Despite selling below its redevelopment costs due to post-pandemic market conditions, the property boasts high-quality tenants including Valent BioSciences, Medline Industries, and Bristol Myers Squibb. These tenants have secured nearly $70 million in contractual base rent.

    R2 CEO Matt Garrison is optimistic about the acquisition, planning to enhance amenities and services while creating spec office spaces of various sizes. However, with Medline's exit in 2026, the buyers must prioritize leasing strategies to maintain cash flow. The property's strong connectivity to Interstate 294 and history of attracting top-tier companies make it an attractive asset in a suburban market adjusting to post-pandemic realities.

    This transaction aligns with R2’s opportunistic approach to real estate investment during periods of market dislocation, following their $60 million acquisition of 150 North Michigan Avenue earlier this year.